State, diaspora, and development: what role does the state play in diaspora direct investment? Case study: Nigeria

Abstract

This paper examines the role that the Nigerian state plays in diaspora direct investment by analyzing government policies that either create a market for diaspora Direct Investment or potentially hinder diaspora direct investment by using Nigeria as a case study. The Diasporas are seen as a link between the transfer of goods, capital, and information between their country of origin and their destination countries. The state-diaspora relations demonstrate where and how this link may be utilized for the economic development of developing countries. This paper analyses 3 key areas that constitute diaspora and development. Firstly, diaspora engagement by analyzing the development of the Nigeria diaspora networks in the United Kingdom, France, and Canada. By discussing the perceptions of the Nigerian diaspora of the government, their current development practices, and their obstacles to investing in their home countries. Secondly, this paper will discuss the state diaspora relationship and policy initiatives developed by the Nigerian government that engages the diaspora and mobilize diaspora capital for development through the diaspora bond initiatives and investment fund targeted at the diaspora.